Understanding Compliance Regulations
Companies devote much of their resources to ensuring that their practices meet compliance regulations. Understanding compliance regulations can be tricky, and requirements can vary from industry to industry. Generally, they aim to protect customers’ private information and failing to do so can cost companies millions of dollars.
Due to the complexity of the regulations, and human error that happens frequently on the job, companies will undoubtedly face big consequences. Establishing a compliance plan with proper training and tools like visitor management can help avoid the financial and reputational risks associated with non-compliance.
Risks Associated with Compliance Regulations
- Financial Risk
Many compliance regulations are concerned with safeguarding visitor information. This information must be recorded and stored in a way that not only keeps it secure but also allows for it to be accounted for. If a company fails to comply with their respective regulations, they run the risk of being heavily fined.
For example, companies that do not comply with the General Data Protection Regulation (or GDPR) can be fined as much as €20 million. Yes, the fine is in euros, but that does not mean that GDPR only applies to companies operating in the European Union; any company that does business with another company subject to the jurisdiction of the EU must also follow the requirements of GDPR or face the consequences.
- Reputational Risk
Although fines can force a company out of business, the impact on reputation can be equally detrimental. Oftentimes, the consequence of non-compliance is both financial and reputational.
The 2018 investigation on Facebook and Cambridge Analytica not only cost Facebook £500,000, but it may have forever changed the way social media users self-censor. Facebook’s actions raised red flags to users in terms of privacy, completely altering the credibility of the site and social media platforms as a whole. A loyal customer base is imperative, so harming the level of trust will majorly hurt business operations.
Key Compliance Tools and Training
- Proper Training
Nearly every department, including Finance, HR, and Marketing, handles personal information daily. Distractions and other human errors can lead to security dangers. Most mandates have online courses available for all staff to take before official employment. These courses break down the logic behind key compliance regulations, making it easy for employees to understand and therefore making it less likely for them to ignore the procedures once on the job.
- New Hires
Assigning a person specifically to ensure that operations comply with regulations is required in some cases. GDPR, in particular, requires a data protection officer, or DPO, be hired to ensure that the company behaves ethically at all levels. These employees serve as key tools in maintaining compliance.
- Data Encryption
To put it simply, data encryption transforms text into an unreadable line of numbers that can only be deciphered with the use of a password. Encryption is useful for protecting any data you don’t want stolen, ranging from text messages to social security information. Encrypting customer data is a key necessity for modern business, even beyond compliance reasoning.
- Visitor Management Software (VMS)
The front desk is one of the most vulnerable places for a breach in security. A paper logbook with visible private information simply does not meet safety standards, especially in this day and age. Allowing guests to check-in digitally makes for a safer lobby. A digital visitor management software program securely and reliably processes, manages, and encrypts data so you don’t have to. Automating compliance is just one of the ways that a digital visitor management system is a key tool in saving a company a considerable amount of money.
Complying with security regulations saves companies money. Having a plan and the proper tools set in place ensure compliance is integral to mitigate risk. Thankfully, modern technology like visitor management has allowed us to meet the regulations with ease. Contact Veristream today at 1-888-718-0807 or schedule a demo to talk with a security specialist about how a digital check-in system can help your company meet compliance regulations.